Royalty Pharma makes Elan bid public
Royalty Pharma (New York, N.Y.) made public a proposal to acquire Elan Corp. plc (NYSE:ELN) for $11 per share in cash, or about $6.5 billion. The price is a 6% premium to Elan's close of $10.42 last Tuesday, the day before Royalty Pharma made the offer. The price is a 5% premium to Elan's close of $10.46 on Feb. 5, the day before Elan and partner Biogen Idec Inc. (NASDAQ:BIIB) said Biogen will pay Elan $3.3 billion in cash to acquire full rights and IP for multiple sclerosis (MS) drug Tysabri natalizumab. Last week, Elan said it would return to shareholders $1 billion of the upfront payment through a share buyback program (see BioCentury, Feb. 25).
Royalty Pharma said it has not received a formal response from Elan and that it has been "unsuccessful in engaging" with the company since making the bid. Elan said it will consider "any credible proposal" alongside other strategic transactions and that further announcements will be made "if and when appropriate." JPMorgan, BofA Merrill Lynch and Groton Partners are advising Royalty Pharma, which said it would finance the deal through available cash and debt. ...